The 2008 financial crisis is the worst money involved crisis that shook the world. It led to the Great Recession. That's when housing prices fell 31.8 percent, more than the price plunge during the Depression. Two years after the recession ended, unemployment was still above 9 percent. That's not counting discouraged workers who had given up looking for work. People were distressed and traumatized by this experience. Many people lost their jobs and homes.
The first sign that the economy was in trouble occurred in 2006. That's when housing prices started to fall. At first, realtors applauded. They thought the overheated housing market would return to a more suitable level. People didn't realize there were too many homeowners with credit. Banks had allowed people to take out loans for 100 percent or more of the value of their new homes. Many citizens blamed the Community. Many others blame the government for not having stricter rules for banks. However others blame the banks for giving out money to whoever and whatever people that needed it , they didn't get written evidence which proved that they had a appropriate job. The money that the bank had given them they couldn't afford to pay it back with a little bit of money which is called interest. That resulted to the financial crisis. People still question whether there will ever be another financial crisis.
10yrs on what has changed?
In the last 10yrs numerous things have changed with banks, making them more stronger reliable and safer. There is closer supervision on banks and governance. At the same time, attention has been paid to consumer interests. For all the above reasons, the banking system is much stronger and more resilient to a similar crisis. People have been more trustworthy of banks and rely on banks much more even though no one can tell the future and anything can happen. On the other hand governments have been regularly holding meetings with special advisers and discuss in detail about how we as a community can make banks more reliable to make sure the financial crisis will never happen again.
Why do you think the finiacial crisis really happened?
People lost their homes...